DROPBOX INC-CLASS A (DBX)
US26210C1045 - Common Stock
Overall DBX gets a fundamental rating of 5 out of 10. We evaluated DBX against 279 industry peers in the Software industry. While DBX has a great profitability rating, there are quite some concerns on its financial health. DBX scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year DBX was profitable.
DBX had a positive operating cash flow in the past year.
In multiple years DBX reported negative net income over the last 5 years.
DBX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 22.39%, DBX belongs to the top of the industry, outperforming 97.85% of the companies in the same industry.
With an excellent Return On Invested Capital value of 30.25%, DBX belongs to the best of the industry, outperforming 98.92% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DBX is above the industry average of 11.54%.
The last Return On Invested Capital (30.25%) for DBX is above the 3 year average (15.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.39% | ||
| ROE | N/A | ||
| ROIC | 30.25% |
ROA(3y)14.62%
ROA(5y)6.23%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)15.34%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of DBX (22.71%) is better than 90.68% of its industry peers.
The Operating Margin of DBX (20.01%) is better than 89.25% of its industry peers.
DBX's Operating Margin has improved in the last couple of years.
The Gross Margin of DBX (82.43%) is better than 88.89% of its industry peers.
In the last couple of years the Gross Margin of DBX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.01% | ||
| PM (TTM) | 22.71% | ||
| GM | 82.43% |
OM growth 3Y34.27%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.07%
GM growth 5Y2.45%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DBX is creating value.
DBX has less shares outstanding than it did 1 year ago.
DBX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, DBX has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.67, we must say that DBX is in the distress zone and has some risk of bankruptcy.
DBX has a Altman-Z score of 1.67. This is comparable to the rest of the industry: DBX outperforms 41.94% of its industry peers.
The Debt to FCF ratio of DBX is 1.98, which is an excellent value as it means it would take DBX, only 1.98 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.98, DBX is in the better half of the industry, outperforming 67.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.98 | ||
| Altman-Z | 1.67 |
ROIC/WACC2.73
WACC11.08%
2.3 Liquidity
A Current Ratio of 0.87 indicates that DBX may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.87, DBX is doing worse than 78.85% of the companies in the same industry.
DBX has a Quick Ratio of 0.87. This is a bad value and indicates that DBX is not financially healthy enough and could expect problems in meeting its short term obligations.
DBX has a worse Quick ratio (0.87) than 78.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
DBX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.63%, which is quite impressive.
Measured over the past years, DBX shows a very strong growth in Earnings Per Share. The EPS has been growing by 37.83% on average per year.
The Revenue has been growing slightly by 3.01% in the past year.
The Revenue has been growing by 12.44% on average over the past years. This is quite good.
EPS 1Y (TTM)20.63%
EPS 3Y28.86%
EPS 5Y37.83%
EPS Q2Q%7.14%
Revenue 1Y (TTM)3.01%
Revenue growth 3Y9.34%
Revenue growth 5Y12.44%
Sales Q2Q%0.92%
3.2 Future
The Earnings Per Share is expected to grow by 5.70% on average over the next years.
DBX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.64% yearly.
EPS Next Y13.76%
EPS Next 2Y10.52%
EPS Next 3Y9.36%
EPS Next 5Y5.7%
Revenue Next Year1.9%
Revenue Next 2Y1.88%
Revenue Next 3Y2.03%
Revenue Next 5Y5.64%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.30, DBX is valued correctly.
DBX's Price/Earnings ratio is rather cheap when compared to the industry. DBX is cheaper than 92.47% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.96. DBX is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 11.54 indicates a reasonable valuation of DBX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DBX indicates a rather cheap valuation: DBX is cheaper than 93.19% of the companies listed in the same industry.
DBX is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.3 | ||
| Fwd PE | 11.54 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DBX indicates a rather cheap valuation: DBX is cheaper than 87.10% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DBX indicates a rather cheap valuation: DBX is cheaper than 94.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.73 | ||
| EV/EBITDA | 14.48 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
DBX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.89
PEG (5Y)0.33
EPS Next 2Y10.52%
EPS Next 3Y9.36%
5. Dividend
5.1 Amount
DBX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DROPBOX INC-CLASS A
NASDAQ:DBX (11/22/2024, 1:49:06 PM)
28.0502
+0.41 (+1.48%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.13B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.3 | ||
| Fwd PE | 11.54 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.89
PEG (5Y)0.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.39% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.01% | ||
| PM (TTM) | 22.71% | ||
| GM | 82.43% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)20.63%
EPS 3Y28.86%
EPS 5Y
EPS Q2Q%
EPS Next Y13.76%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.01%
Revenue growth 3Y9.34%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y